Sentry Insurance v. Brand Management Inc.
Sentry Insurance initiated actions against Brand Management, Inc., Budget Services, Inc., and Hershel Weber for claims including breach of contract and alter ego liability, arising from workers' compensation insurance policies. Brand and Budget, controlled by Weber, allegedly breached the casualty agreement by failing to pay Sentry, leading to significant unpaid claims. The defendants engaged in recalcitrant discovery behavior, resulting in a preclusion order against their alter ego defense. The Court found Weber completely dominated Brand and Budget, using this domination to undercapitalize them and render them judgment-proof, thereby committing a wrong against Sentry. Consequently, the Court granted Sentry's motion for partial summary judgment on breach of contract against Brand and Budget, and on alter ego liability against Weber, while denying the defendants' cross-motion.